The Cheapskate Trophy is a trophy that appears in the episode, "Kracked Krabs." It is given to the cheapest crab underwater every year. In that episode, the Penny Pinchers give it to Mr. Krabs, because he is the cheapest crab of the year.
After Mr. Krabs takes the trophy, it is shown to be attached to a string, and they pull it back as a gag.
It is a golden trophy. It has a claw of a crabs on it, which looks similar to the one on the Magic Claw. It has a penny at the top, because it is the award for the Penny Pinchers' contest.